• Steve H. Hanke
    05/04/2016 - 08:00
    Authored by Steve H. Hanke of The Johns Hopkins University. Follow him on Twitter @Steve_Hanke. A few weeks ago, the Monetary Authority of Singapore (MAS) sprang a surprise. It announced that a...

China Takes Advantage Of September Price Drop; Imports Record Amount Of Gold

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Mon, 11/07/2011 - 14:56 | 1854083 fuu
fuu's picture

More Gold Bitchez!

Mon, 11/07/2011 - 15:01 | 1854095 CharlieSDT
CharlieSDT's picture

They're gonna drop the bomb on us at some point and we'll be super sorry when they back the renminbi with gold.  That will be the Pearl Harbor of WW3.



Mon, 11/07/2011 - 15:25 | 1854158 Pladizow
Pladizow's picture

Gold - bLitches!

Mon, 11/07/2011 - 15:27 | 1854245 IBelieveInMagic
IBelieveInMagic's picture

Looks like GTU ETF is buying gold with additional units they have created $180 million worth?

Mon, 11/07/2011 - 15:29 | 1854257 BaBaBouy
BaBaBouy's picture

Chinee buying Up Everything REAL, for US Pennies on the dollar...

Thanks ALL Genious MBA's for getting us here!!!!!!!!!!!!!


Mon, 11/07/2011 - 16:49 | 1854558 SRSrocco
SRSrocco's picture


Yes it is true that China bought a great deal of gold in SEPT.  They also used to export 3,500 tonnes of silver a year and now they IMPORT silver.  The Chinese are smart to buy gold and silver when they get globbered while here in the states we have our DEFLATIONIST ANALYSTS who tell us to sell gold and silver on Spikes.  I am not going to name names...but there are at least a good dozen of them out peddling the deflation card.

One more thing... many are saying silver is behaving more like copper and is more an industrial metal than a precious metal.  I don't know of any COPPER EAGLES, PHILHARMONICS, MAPLES or etc.  It's mostly gold and silver.

Lastly, silver is actually doing much better than copper over the past year and a half.  In March of 2010 you could buy 5lbs of copper for one ounce of silver, whereas today you can buy 9.5 lbs of copper for one ounce of silver.  I have written a blog piece at the SILVERGOLDSILVER website which you can find at the link below:



When gold was taken down in SEPT, silver's fall was almost identical.  Silver is heading much higher with gold.  Deflation is for dummies.

Tue, 11/08/2011 - 00:48 | 1855585 trav7777
trav7777's picture

Platinum is behaving like copper and is WAY more precious than silver...or gold

Mon, 11/07/2011 - 15:30 | 1854268 bernorange
bernorange's picture

China appears to be preparing for internationalization of the Renmini using gold as a throttle.  Whether or not they go all the way and back the currency with gold remains to be seen.  I don't think it's a coincidence that they and their good friends Russia have been so aggressively acquiring physical gold though.

Tue, 11/08/2011 - 00:51 | 1855594 trav7777
trav7777's picture

yeah, um, at the same time they are pumping 1T yuan into their banks?  LOL at the CNY as any kind of reserve currency.  As a reserve you're better holding toilet paper than Chinese paper.

Mon, 11/07/2011 - 15:54 | 1854381 EL INDIO
EL INDIO's picture

Actually that would be the worst think they can do.

They would be the biggest losers with minuscule Gold reserves compared to the US and Europe.

Assuming America still has its Gold, such a move would destroy the dollar as a reserve currency but it would also destroy/devalue the debt too, making China poor and America rich again.

The Chinese are trapped and will be trapped for a long time unless they invade America.

Mon, 11/07/2011 - 17:48 | 1854794 DoChenRollingBearing
DoChenRollingBearing's picture

China invade America...  How?

Mon, 11/07/2011 - 20:02 | 1855113 trembo slice
trembo slice's picture

key word in your analysis... ASSUMING

so many things happen that are counter-intuitive in the world marketplace because it is totally fucking manipulated.  while the Chinese have indeed backed themselves into an unsatisfactory position... they are exposed to too much US debt....

they are in a much better position than we are.  we are debtors, they are creditors.  when the goods stop flowing here and the world monetary system changes away from the dollar-reserve standard we will be the ones that get FUCKED. 

they also run an inflationary monetary policy... so they have garaunteed the inevitable bursting of their real-estate bubble... but we are the ones that are trapped.

we lack the political will to address the fundamental problems with the US economy... i.e., we seek to usher in economic growth based on flawed economic policies which view the world upside-down... more spending, more debt, more money.

we cannot grow our way out of our debt obligations... with future entitlement promises our debt figure is closer to $150 trillion than $15 trillion.  We are trapped.  We will print to cover our obligations, so anyone earning dollars for a wage or forced to deal with dollars (any oil exporter) will be forced to accept a lower standard of living.

buy silver bitches.

Tue, 11/08/2011 - 00:52 | 1855597 trav7777
trav7777's picture

due to how china dealt with reserves, they aren't really a creditor in the sense that you believe

Mon, 11/07/2011 - 17:41 | 1854782 Libertarian777
Libertarian777's picture

don't see that happening.

Renminbi has to be pegged to the US dollar or Chinese exports fall off the cliff.

We're in a symbiotic relationship, with a lose-lose situation. All the Chinese can do is get rid fo the US fiat by exchanging it for hard assets.

Not to mention China's debt problem. Think they're much better  the US? The state and local governments have trillions in debt and mortgage losses. I doubt the politburo in China would dare give up legal tender laws and fiat currency and restrict themselves to hard asset backed currency.

Mon, 11/07/2011 - 17:50 | 1854798 DoChenRollingBearing
DoChenRollingBearing's picture

Yesterday I read somewherre that lots of RICH Chinese are trying to get OUT!

Tue, 11/08/2011 - 00:54 | 1855602 trav7777
trav7777's picture

China will fucking steal anything from anyone the Party wants.

This is precisely why NOBODY would trust them as a reserve currency...EVER.  They've tried to steal every single technology that has ever entered their four corners and then counterfeit it.

Yeah, with all the fake rolexes, LV, and stolen high speed rail systems, right, Europe is right there with the yuan bein a reserve LOL.  Nobody who ever put any IP into China would trust anything they ever wrote on paper.  Ever.

China had the ORIGINAL hyperinflation.

Mon, 11/07/2011 - 15:01 | 1854102 Carlyle Groupie
Carlyle Groupie's picture

China: largest gold exporter in the world.


Importer too? It does wonders for GDP.

Mon, 11/07/2011 - 15:08 | 1854129 lookma
lookma's picture

Most of China's gold output stays in the country

Not exporter says your wiki link!

Mon, 11/07/2011 - 15:54 | 1854386 Cthonic
Cthonic's picture

Perhaps meant to say 'largest producer', in which case may be pointing out that importing gold would shrink their trade deficit.

Mon, 11/07/2011 - 19:17 | 1855036 Carlyle Groupie
Carlyle Groupie's picture

No id-er. Just putting it out there. Lotsa gold in China.

When I need some and do not want to fill out the US-1099. I go to China.

Thank you from China!

Mon, 11/07/2011 - 15:31 | 1854278 bernorange
bernorange's picture

China stopped exporting gold a few years ago.  They are keeping national production and importing gold now.

Mon, 11/07/2011 - 15:34 | 1854290 moskov
moskov's picture

China is the Biggest Producer of Gold and it's ileagal to ship gold outside of China for even significant amount.


The other thing is China's gold reserve in ''Fort Knox''  wasn't belong to the current communist government , but the former government of KMT aka Republic of China during WW2. Since the establishment of Communist Government, China never ship any its own gold outside of China, and all the gold products they mined for themselves from outside of China are all bypassing the trading in London and ship directly to Shanghai.

So basically the socalled WGC or Fed will never be able to get to know exactly how much their gold reserve is just like their nuclear heads. It's all under-reported for national security

Mon, 11/07/2011 - 15:36 | 1854304 s2man
s2man's picture

I thought China kept/bought all domestically mined gold...

Mon, 11/07/2011 - 15:08 | 1854127 CPL
CPL's picture

WTF just happened on the markets?


Seriously straight line up.  All exchanges..

Mon, 11/07/2011 - 15:13 | 1854141 JW n FL
JW n FL's picture



Listen.. when they are busy doing God's Work.. everything goes up towards heaven!

We will all be saved now!

Thank God for Wall Street!


Open Market Operations / Heavy HFT Volume are pushing the Markets Higher and PM's Lower! Just like in nature! all natural movements..

Mon, 11/07/2011 - 17:53 | 1854806 DoChenRollingBearing
DoChenRollingBearing's picture

I'll go with the guy (who threatens the Iranian Navy if they show up here) on this one.  The PPT...

Mon, 11/07/2011 - 15:14 | 1854150 piaoyou
piaoyou's picture

What else can it be except Italy?

Do people really think replacing the PM would change Italian econimic picture? Italian PMI indicates a deep recession.

Mon, 11/07/2011 - 15:19 | 1854203 Missiondweller
Missiondweller's picture

Stealth QE3

Mon, 11/07/2011 - 15:22 | 1854220 CPL
CPL's picture

Only reasonable explaination of why Oil, Gold and Silver are going batshit crazy as in UP.


Inflation incoming people.  Someone just printed another trillion.

Mon, 11/07/2011 - 16:15 | 1854460 Snidley Whipsnae
Snidley Whipsnae's picture

China under reporting their gold purchases? Who coulda knowed? LOL

Mon, 11/07/2011 - 14:58 | 1854094 RobotTrader
RobotTrader's picture

GSS, SSRI, CDE all getting dryhumped today 7%+

Many "money manglers" are picking up these beaten down junkers

In order to "make their year" in just 2 months.

Mon, 11/07/2011 - 15:05 | 1854116 css1971
css1971's picture

I think you just failed the Turing test.


Mon, 11/07/2011 - 15:07 | 1854125 GeneMarchbanks
GeneMarchbanks's picture

You really shouldn't get junked for those observations, after all, SSRI will not trade at these prices for long. There will be a sort of tech mania type deal at some point.

Mon, 11/07/2011 - 15:14 | 1854154 fuu
fuu's picture

He could say the sky is blue, the sun is warm, and the grass is refreshing and I would still junk him at this point.

Mon, 11/07/2011 - 15:18 | 1854187 GeneMarchbanks
GeneMarchbanks's picture

Yeah... me too.

Mon, 11/07/2011 - 15:24 | 1854230 NotApplicable
NotApplicable's picture

But would you do the same to RoboTrader?

Mon, 11/07/2011 - 15:13 | 1854148 Cleverbot
Cleverbot's picture

Oh that's a problem.

Mon, 11/07/2011 - 15:16 | 1854171 Spastica Rex
Spastica Rex's picture

Play our game and you will be richly rewarded! We can be generous, when the mood takes us.

Mon, 11/07/2011 - 14:59 | 1854096 YesWeKahn
YesWeKahn's picture

Market just jumped  0.5%  on this?

Mon, 11/07/2011 - 15:12 | 1854140 CPL
CPL's picture

Fuck the markets...


Broken forever.

Mon, 11/07/2011 - 14:59 | 1854097 NEOSERF
NEOSERF's picture

Shhh...don't tell the Chinese but the EU has had another secret summit to nullify the value of gold...it will now be priced similar to copper and used for water pipes..

Mon, 11/07/2011 - 15:03 | 1854108 MonsterZero
MonsterZero's picture

Seeing as I already use gold to filter my coffee I have no issue with using gold for water pipes. Thanks for the suggestion.

Mon, 11/07/2011 - 15:02 | 1854101 Ignorance is bliss
Ignorance is bliss's picture

Gold going to China, Russia, Venezuela, etc...leaving the west.  No worries we'll get it back after we win WWIII

Mon, 11/07/2011 - 15:03 | 1854109 william shatner
william shatner's picture

Let's get physical, Physical... well you know the song.

Mon, 11/07/2011 - 15:04 | 1854115 ArkansasAngie
ArkansasAngie's picture

"WE will also know that the Chinese number for total gold holdings is grossly underreported."

Well ... that's true for me and my gold, too.

As aside wouldn't countries such as Italy be better off if their gold was calculated at $5,000  instead of $1775?

Maybe some of these guys will starting wondering whether or not they are actually members of the 1%'ers or ... maybe they should start thinking like a 99%'er.

Mon, 11/07/2011 - 15:05 | 1854117 MarketTruth
MarketTruth's picture

News Reporter FAIL is your gain. The longer sheeple have no clue, the more time you have to buy before they wake up.


Mon, 11/07/2011 - 15:13 | 1854143 moonstears
moonstears's picture

AND...you can't eat it.

Mon, 11/07/2011 - 15:50 | 1854266 Hook Line and S...
Hook Line and Sphincter's picture

Assuming the reports are true, accurate, and not China propaganda, it begs the question of whether the Occidental PTB and sovereigns will have to change tact. Soon.

Do they want China to acquire the phyzz? Whats the geopolitical advantage? How does that satisfy the step to a world currency, unless there has been some sort of agreement behind the scenes that China has signed on.

It's hard to imagine they could be intending on rebooting a system where China wouldn't adamantly question and demand audit of stated AU quantities, as well as allow an unmonitored reserve of PM's that surely would be fractionalized.

Either China is double-dealing against the worlds population in cahoots with the West, or they will be a definitive target of the MIC.

( ! )J Hook Line and Sphincter


Mon, 11/07/2011 - 15:09 | 1854132 barnabeg
barnabeg's picture

Anyone know why the hell stocks are rallying?

Mon, 11/07/2011 - 15:13 | 1854147 CPL
CPL's picture

No clue.  No news.


It's like not one single retail trader in on the floor and a single HFT just bought itself into a position it will never escape from.


Now I wonder which one of the trade houses are fucked.

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